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Federal Transit Administration : USDOT’s DBE Regulation
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  1. Federal Transit Administration: USDOT’s DBE Regulation Understanding the New Final Rule

  2. U.S. Department of Transportation DBE Rulemaking: Jan. 28, 2011 Purpose • Improve accountability and oversight • Update rule to accommodate changed circumstances • Respond to programmatic issues/weaknesses

  3. DBE Program: 5 Key Elements

  4. Overview of DBE Rule Changes • Termination of DBE Firms • Personal Net Worth • Interstate Certification • Accountability and Goal Submissions • Program Oversight • Small Business Provisions • Project Goals

  5. Termination of DBE Firms • Prime contractors may not terminate DBE subcontractors without • “good” cause and • approval from the project sponsor and/or recipient Termination for Convenience

  6. Termination of DBE Firms • Impact • No arbitrary, unfair removal of DBEs from projects where award is contingent on their participation • Helps prevent fraud

  7. Personal Net Worth (PNW) New Rule: Personal Net Worth (PNW) for DBE applicants increased from $750,000 to $1.32 million

  8. Personal Net Worth (PNW) Impact • Indexed to inflation so current PNW amount is equivalent to the amount in the original rule • More individuals and firms eligible for DBE status

  9. Interstate DBE Certification • Provides mechanism for DBEs certified in one state to get certified in others • Applicant firms must provide new state its certification notice • New state must certify unless it has identified “good cause” to deny

  10. Interstate DBE Certification Impact • Makes it easier for DBEs certified in their home state to get certified as a DBE in other states • More work/contracting opportunities for DBEs!

  11. Accountability and DBE Goal Submissions New Rule If a recipient fails to meets its overall DBE goal, it must: • Analyze the shortfall • Develop a correct corrective action plan; and • Submit the plan to the relevant operating administration (FTA, FHWA or FAA) for approval

  12. Accountability and DBE Goal Submissions Impact • Ensure DOT recipients are living up to both the letter and the spirit of the DBE rule • Increased accountability for recipients • Provides DOT modes another means of performing routine oversight

  13. Program Oversight New Rule: Recipients must monitor and provide written certification for every contract/project on which DBEs are participating, ensuring the DBE(s) are in fact performing the work

  14. Program Oversight Impact: • Root out fraud—no DBE “fronts!” • Ensure DBEs are getting the opportunity to perform work committed to them

  15. Small Business Provisions New Rule • Recipients must add an element to their DBE programs which fosters small business participation • Must submit plan to relevant operating administration by February 12, 2012

  16. Small Business Provisions Impact • Increase race-neutral DBE participation on DOT-assisted contracts • Increase competition on public works projects • Reduce reliance on race-conscious contract goals

  17. DBE Project Goals New Rule: In appropriate cases, the Administrator of the relevant operating administration may require a recipient to submit a project-specific DBE goal

  18. DBE Project Goals Impact: Increased transparency, accountability, and oversight for DOT-funded “mega” projects

  19. Summary

  20. Have More Questions? Get Help! • On the web: • Federal Transit Administration’s DBE Page • www.fta.dot.gov/dbe • Office of Small & Disadvantaged Business Utilization • www.osdbu.dot.gov • Departmental Office of Civil Rights • http://www.dotcr.ost.dot.gov/ • Call your Regional Civil Rights Officer!

  21. Or… Contact: Federal Transit Administration Office of Civil Rights 1200 New Jersey Ave. SE East Building, 5th Floor Washington, D.C. 20590 Office: (202) 366-4018

  22. Thoughts? Questions? Comments?